TMI Blog2003 (8) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant cleared part of their production under claim of exemption under Notification No. 8/96, dated 27-3-1996 and other subsequent notifications. The claim of the appellant was that the boxes in question were exempted under the following heading of the notification :- Reference No. Chapter or heading No. or sub-heading No. Description of goods Rate Conditions (1) (2) (3) (4) (5) 73.6 73.10 and 73.26 Mathematical boxes, geometry boxes and colour boxes Nil - Subsequently show cause notice, dated 22-2-2001 was issued alleging that there was evasion of central excise duty of about Rs. 67 lakhs in respect of boxes cleared as geometry boxes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sell geometrical or mathematical boxes with geometry or mathematical instruments, though in some cases the mathematical/geometrical boxes may be sold along with the instruments also. The learned Counsel for the appellants points out that the Central Excise Tariff classifications specifically recognizes this inasmuch as HSN Notes under Chapter Heading 90.17 for drawing instruments specifically states that Drawing compasses, dividers, reduction compasses, spring bows, mathematical drawing pens, dotting wheels, etc., whether in a case (e.g. drawing sets) or separately. It is also the contention of the appellant that geometry/mathematical box makers and geometry/mathematical instrument makers are different industries and both the products are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from several venders and that, these cases are sold in the market by us as empty cases which the students purchase and thereafter the students purchase the instruments which were put into these boxes . Shri Chavan has also stated that the boxes of dimensions 3.75 x 7.25 x 1 are suitable for filling the instruments. With regard to boxes with the dimensions 2.25 x, 7.5 x 1 he has stated that these are also used as geometry boxes and that M/s. Ashoka Trading Corporation, Delhi manufactures mathematical instruments of such small size. 4. During the hearing of the case, the learned Counsel for the appellant has also pointed out that the interpretation placed in the impugned order could also lead to a situation where the exemption would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal boxes and clearing them without payment of any duty; but to their knowledge, no demand has been raised against them. 6. The learned SDR has contended that since the exemption is specific to mathematical/geometrical boxes , granting exemption to empty boxes would not be correct inasmuch as these boxes become geometrical/mathematical boxes only upon the filling of geometrical/mathematical instruments inside them and not in their empty condition. He also submitted that the granting of exemption to general category of metal boxes would lead to abuse of the exemption. 7. The issue arising for consideration is whether the metal boxes in question are geometry boxes/mathematical boxes. It is clear from the evidence on record that these box ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t would not make the goods different from the goods which were put to their normal use. It is also significant that the demand in the present case is in respect of only boxes, which were cleared empty. The same boxes when they were cleared with instruments, were accepted as geometry/mathematical boxes by Revenue Authorities. From this itself, it is clear that the boxes are manufactured for, intended and are used as mathematical/geometry boxes. The only difference being that some boxes are cleared after filling with instruments as geometrical sets and some others are cleared empty for further sale and use as such boxes. The impugned order proceeds to determine the classification depending upon the actual use, which as already stated, is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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